When the proportional change in the demand of a commodity is greater than the proportional change in the price of the commodity then?


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Elasticity Of Demand

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Solution : Price elasticity of demand will be less than unity `( Ed gt 1)` as proportionate change in demand is less than proportionate change in price.

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When the proportional change in the demand of a commodity is greater than the proportional change in the price of that commodity then?

If change in the demand of the commodity is proportionate to the change in price, the demand of the commodity is known as unit elasticity. Here, the ratio of the change in demand and the change in price is one.

When the proportionate change produced in demand is greater than the proportionate change in price of a product?

Relatively elastic demand refers to the demand when the proportionate change in the demand is greater than the proportionate change in the price of the good. The numerical value of relatively elastic demand ranges between one to infinity.

When the proportional change in the demand of a commodity is less than the proportional change in the price of the commodity then?

Demand is said to be inelastic, When the demand for a good is less responsive to its price. In this case, the percentage change in the demand for a good is less than the percentage change in its price and |ed| < 1.

When the proportion of change in quantity demanded is greater than the change in it's price the demand is said?

Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner. An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.

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